India is likely to clock an economic growth rate of 4.6 per cent this financial year and the expansion may improve to 5.4 per cent in 2014-15, the International Monetary Fund said today.

"Growth in India picked up after a favourable monsoon season and a higher export growth and is expected to firm further on strong structural policies supporting investment," IMF said in its World Economic Outlook update.

The growth rate in 2015-16, at factor prices (excluding taxes), is likely to be 6.4 per cent, it added.

At market prices (basic prices plus taxes but less subsidies), India's growth rate in 2013-14 is likely to be 4.4 per cent, IMF said. Its earlier estimate in October was 3.8 per cent.

For the next two fiscals, IMF projected a growth rate of 5.4 and 6.4 per cent respectively.

India's economy slowed to a decade low of 5 per cent in the last fiscal due to global slowdown and domestic factors, like high interest rates.

Growth rate during April-September of 2013-14 slipped to 4.6 per cent from 5.3 per cent in the same period last fiscal.

The report also said global activity strengthened during the second half of 2013 and is expected to improve further in 2014-15, largely on account of recovery in the advanced economies.

"Global growth is now projected to be slightly higher in 2014, at around 3.7 per cent, rising to 3.9 per cent in 2015...," the report said.